How Existing Customers Can Help Fill Your Sales Pipeline

Small business owners know that leads are the lifeblood of their business and that a tremendous source of leads are existing customers. The best part of securing leads from clients? It costs almost nothing.

So why do so many business owners shy away from asking for customer referrals? There are many reasons, including: 

1. Fear of rejection. The fact is, if you are doing a good job for a customer, why wouldn’t that customer want to give you a referral? And if you are not doing a good job then they probably won’t be your customer much longer anyway.
2. Fear that clients will feel imposed upon. One way to overcome the feeling of being a “bother” is to give referrals to your clients. When you are used to giving your clients’ names out to people you know, you realize that it just makes good business sense and it is not a lot to ask.
3. Fear of appearing to be a failure. A steady pipeline of customers is critical to the success of any business. Everyone knows that. While you may worry that you will look desperate, chances are you will be viewed as driven to succeed instead.
4. Clients should provide referrals without being asked. Unless you ask customers to give you referrals, chances are they won’t think about it – no matter how much they value you.  The fact is, most people are busy thinking about themselves but when asked, have no problem spreading the good word about your business.

So how should you go about asking clients for referrals? Here are some tips we have found helpful at LeadGen Compass:

• The first purchase a customer makes should be followed up with a feedback questionnaire that asks if he or she would consider referring someone to you who was interested in the same type of product or service. If the respondent says yes, a separate email should be sent with an easy-to-forward offer. This allows clients to refer someone without having to go to a lot of trouble.
• If a customer refers a friend to you, make sure you show your appreciation. This could include a coupon for a percentage off a product or service or sending a thoughtful gift. These small acts can go a long way toward securing more leads.
• In addition to being the right thing to do, it is critical that you always treat your customers the way you would like to be treated. Going the extra mile for a customer when you didn’t have to will leave a lasting impression that will likely pay off in word-of-mouth advertising.

There are countless lead generation methods out there. Customer referrals are just one of them. However, the ROI it offers makes it one of the best.